Running your business like a business

QUESTION:
Tom, I’ve seen you use the phrase “running your business like a business” in several different emails. What do you mean by that? And thanks for not sugar coating any of your messages.
— LaShelle

TOM:
Sugar just ain’t very good for you.

It rots things away.

So no need to coat my messages in it.

I think people need to hear it like it is, so I actually tell it like it is.

Even if it’s uncomfortable sometimes.

But I digress…

When I say “running your business like a business” I mean that a business should be treated seriously, not as a mere hobby or just a passing fancy.

If you want to succeed, and if you want to build something that will consistently produce healthy profits for you, then you need to do it right.

How can you do it right?

Here’s a quick list to test yourself and your business against:

1. You focus exclusively on your business at least once a day.

2. You incorporate your business to give it a life of its own.

3. You keep a separate bank account for your business.

4. You NEVER co-mingle your personal funds by spending business money on personal things. (The IRS requires this as well. And doing so could pierce your corporate veil of protection.)

5. You get advice from experts in the field, not random people who have never done what you are trying to do.

6. You consistently focus on marketing your business to get customers and clients. (If you don’t market you’ll never get off the ground.)

7. You follow an ethical code and don’t hurt anyone as you grow.

8. Conduct business in a businesslike manner. You don’t run a circus. When people interact with you and your business they should have confidence and trust in you. If your outward appearance is sloppy, why would you expect anyone to believe that your whole operation isn’t sloppy? How much do you trust a poorly run business to do what they say they can do?

9. You back-up your computer and data to prevent loss.

10. You seek out and invest in the advice of a mentor to help you focus, build and grow.

11. You conduct business in writing. Therefore there is no “he said, she said”. It’s all written down in plain English.

And the list goes on…

Conducting your business in a businesslike manner will help your clients (sellers, buyers, etc.) to trust you and want to do business with you.